Plunge in International Travel to NYC Spurs Support for Tourist Tax Cut

NEW YORK, NY (04/10/2025) (readMedia)-- New data from the Port Authority of New York and New Jersey show a troubling decline in international tourism, underscoring the urgent need to reduce New York City's tourism tax as City Council members back a cut to New York's hotel occupancy tax - the steepest among major cities in the country - and Mayor Adams signals his administration is studying its benefits.

In February alone, New York and New Jersey airports saw 700 fewer international arrivals compared to the same month last year. LaGuardia alone experienced a sharp 23.8% drop in flights from Canada, Mexico, and the Caribbean. The most significant decline in flights came from Canada, with a staggering 17.8% decrease in passengers arriving at New York and New Jersey airports.

The Hotel Association of New York City (HANYC) and the Hotel and Gaming Trades Council (HTC) are urging City Hall and the City Council to lower the hotel occupancy tax, a tax on tourists, from a whopping 5.875% to 3% in the upcoming city budget. As international travel falters, cutting this tax on tourists will help draw visitors back - boosting hotel occupancy rates, preserving jobs and keeping hotels open, and ultimately increasing city revenue.

"Our industry was devastated by COVID shutdowns, and we're already struggling to fill new available hotel rooms as migrant shelters close and secure new investments. Our industry and the city's economy cannot afford to lose out on any more international tourism," said Vijay Dandapani, president and CEO of HANYC. "Investing in the hotel industry now by lowering the tax on tourists is good for hotels, workers, and the tourism economy."

Rich Maroko, president of HTC, said in a statement that dropping the hotel occupancy tax "will attract more visitors and boost their local spending, which is a smart way to head off potential headwinds to the city's tourism economy." He added: "This tax adjustment is good for workers, city residents, and the city's tax base."

And Mayor Adams this week said "Our team is looking at the possibility of dropping the tax."

HANYC launched StayNYC on Monday, calling for City Hall and the City Council to reduce the tourism tax. The effort is supported by Council Members Amanda Farías and Kevin Riley, as well as HTC and leaders of the tourism industry.

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